"Somebody's going to do it, and - to me - probably the player who's in the best position to do so is Microsoft, because I do think they've recouped a lot of the costs of their console," Hollenshead explained.

"Maybe they'll push the [Xbox 360] to year six - maybe seven - but I've got to believe that they're already planning the transition now, and they have their eye on the ball as to what it is, because I think they see that there are some weaknesses that they can exploit with what's going on at Sony," he added.

Hollenshead believes that sometime in the near future, "the PC is going to gain substantial competitive leverage by virtue of superior technology", and at this point console makers will be forced to rollout the next generation of consoles.